In a recent transaction on September 11, Jason P. Marino, Executive Vice President and Chief Financial Officer of Marriott Vacations Worldwide Corp (NYSE:VAC), acquired 700 shares of the company's common stock. The transaction amounted to a total of $48,300, with the shares purchased at an average price of $69.0.
The purchase was made at prices ranging from $68.95 to $69.46, indicating a weighted average price that reflects the varying costs of shares acquired in multiple transactions. Following the acquisition, Marino's total ownership in Marriott Vacations Worldwide Corp has increased to 15,851 shares.
Investors often monitor insider buying as it can be a sign of confidence in the company's future prospects. The details of the transactions provide transparency and can be of interest to current and potential shareholders.
Marriott Vacations Worldwide Corp, known for its portfolio of vacation ownership, exchange, rental, and resort and property management businesses, is a leader in the leisure industry. The company's stock performance and insider transactions are closely watched by market participants seeking insights into the company's operations and executive sentiment.
In other recent news, Marriott Vacations Worldwide has reported mixed Q2 results for 2024. The company's rental performance surpassed expectations, however, the lower volume per guest figures impacted contract sales. Consequently, Marriott Vacations revised its full-year contract sales forecast and increased its sales reserve due to a higher expected default rate on loans. Despite these developments, the company remains committed to creating shareholder value through dividends and buybacks, with plans for new resort openings.
Truist Securities has revised its financial projections for Marriott Vacations, citing a decrease in expected earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share (EPS) for the years 2024 and 2025. The new 2024 Adjusted EBITDA estimate is now set at $695 million, with the EPS projection for 2024 lowered to $5.96. Looking ahead to 2025, Truist Securities anticipates an Adjusted EBITDA of $758 million and an EPS of $8.39.
These recent developments underscore Marriott Vacations' focus on long-term strategies to enhance value for both customers and shareholders. The company plans to open new resorts in locations including Waikiki, Savannah, Charleston, Thailand, and Bali in the upcoming years. It's also worth noting that despite the mixed results, Marriott Vacations remains focused on reducing leverage to 3 times by the end of 2025 and returning cash to shareholders.
InvestingPro Insights
Marriott Vacations Worldwide Corp (NYSE:VAC) has shown a notable insider transaction with Executive Vice President and Chief Financial Officer Jason P. Marino increasing his stake in the company. This move aligns with one of the InvestingPro Tips that highlights management's confidence in the company, as they have been aggressively buying back shares. Additionally, the company has demonstrated a commitment to returning value to shareholders, having raised its dividend for 3 consecutive years, which is another InvestingPro Tip worth noting.
From a financial perspective, Marriott Vacations Worldwide Corp's market capitalization stands at approximately $2.42 billion, and it boasts a P/E ratio of 15.24. This valuation can be seen as more attractive when considering the adjusted P/E ratio for the last twelve months as of Q2 2024, which is 11.17. Furthermore, the company offers a robust dividend yield of 4.38%, and it has managed to maintain dividend payments for 11 consecutive years. These metrics suggest a potentially appealing opportunity for income-focused investors.
Despite recent stock price volatility and a significant drop over the last three to six months, analysts predict the company will be profitable this year. The company's liquid assets also exceed its short-term obligations, which may provide some reassurance regarding its financial stability in the near term.
For those interested in a deeper dive into Marriott Vacations Worldwide Corp's financial health and future prospects, there are additional InvestingPro Tips available. These tips offer further insights that can help investors make more informed decisions. Visit the InvestingPro platform for a comprehensive list of tips and real-time metrics tailored to Marriott Vacations Worldwide Corp.
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